My adult child passed away in 2020 but received 1099 C's totaling $9700 (write off of credit card debt) in 2021 and a small state tax refund of $400 in 2021 for 2020 taxes. Turbotax will not let me enter her 2020 date of death and complete the return. Do I even need to file for her since the total 'income' is below the standard deduction amount? Would I need to file in the state of Calif?
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If you received a 1099-C for 2020 with your adult child's name and social security number, you have nothing to report. The state tax refund does not need to be reported on a tax return.
Your daughter's final return was filed in 2020. There is no way to report this 1099-C on a 2021 tax return. This does not need to be filed in California either.
If there was an estate established for her, the cancelled debt would be income to the estate.
First - sorry for the loss of your loved one.
Cancellation of debt is normally included in income but since your child is below the filing threshhold no return is necessary.
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